The market clearing price of a good is
A) the price at which there is at least some of the good available for everyone.
B) the price at which there is no surplus and no shortage.
C) the price that consumers prefer.
D) the price that producers prefer.
B
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Which figure above shows the effect of an increase in the cost of the tomato sauce used to produce pizza?
A) Figure A B) Figure B C) Figure C D) Figure D E) Both Figure B and Figure C
The automobile industry is a good example of a monopolistically competitive industry.
Answer the following statement true (T) or false (F)
Suppose the optimal amount of X is 100 units and that the market provides 123 units. This situation is descriptive of
A. externality provision. B. market failure. C. asymmetric information. D. a public goods problem. E. the free-rider dilemma.
The self-correcting tendency of the economy means that rising inflation eventually eliminates:
A. unemployment. B. exogenous spending. C. recessionary gaps. D. expansionary gaps.